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Industrial buyer behavior : A study of the industrial buying behavior in Life Science organizations when faced with a radical innovationBelulaj, Arbnor, Celion, Fredrik January 2011 (has links)
A central part of the marketing process is to be aware of why a customer or buyer makes a purchase and without such an understanding, businesses find it hard to respond to the customer‟s needs and wants. A large part of the current literature concerned with industrial buyer behavior has tended to focus on modeling and mapping the industrial buyer behavior. However, little research has been found on how the industrial buyer behaves when faced with a radical product innovation. Therefore, the purpose of this thesis is to investigate the industrial buyer behavior of firms within the Life Science sector in Uppsala when faced with a radical product. We aim to study the process and identify possible differences from buying a non-radical product. This study will provide valuable information about industrial buyer behavior that might be useful to marketers. This thesis will be conducted by using a deductive and qualitative approach. A case study approach was used with the selected three organizations in the Life Science sector in Uppsala. Semi-structured interviews and a survey were used to gather primary data; secondary data was collected through web pages. Our findings from these three organizations show that the industrial buyer behavior is affected. Using the buy grid framework we see that the process, the steps, doesn‟t change but within the steps different actions are taken. Step 1, 4, 5 shows strong differences when confronted with a radical and a non-radical product. These differences depend on the complexity of the product and the amount of available information. This affects the level of willingness to take risks. As the complexity is seen as high in radical products and there is not sufficient information the risk of buying this type of product means taking high functional risk and high financial risk which the organizations wants to avoid. However, the decision center [decision group] becomes more complex and more individuals are involved in the decision process when faced with a radical product. The most notable factors influencing the decision center in this situation is the size of the organization, the complexity of the product, the functional and financial risk, the importance of the decision at hand, attitude, and personal experience. The supplier criterion goes from being price orientated in the case with a non-radical product towards being more supplier orientated when faced with a radical product. This study does not aim to investigate how companies should market their products and neither does it try to generalize conclusions about industrial buyer behavior. This limitation is due to the small sample used.
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Life cycle cost analysis as a tool for industrial sales: lessons from two industries in India SubconFERNANDO, P USHANI CHATHURANGA SANDEEPANI JAYASIRI, GUNARATHNA, ANGODA L PIYANKARA JAYADEWA January 2022 (has links)
Industrial selling is considered to be one of the highly challenging tasks and sales personnel are exploring new strategies and tools to stay ahead of the competition to achieve organizational objectives. The study has focused on adding to the academic knowledge of the use of an innovative and creative sales tool to enhance the performance of the function. For this purpose, with the professional experience of research team members, the use of Life Cycle Cost Analysis (LCCA) is taken into the account as the tool. Though the LCCA is generally accepted as an instrument used by organizational procurement departments, it has been observed that there is a strategic and functional importance of academically studying the role of the during the industrial sales process, how it has been utilized during the interaction with various members in the organizational decision-making process and the role of the other internal departments in applying it. It was our utmost faith, it would be an interesting and insightful area of academic exploration while addressing relatively considerable the drought in academic studies on industrial sales. The topic was selected based on the researchers’ previous experience followed by thorough literature research in identifying the knowledge gap on the topic. The empirical data collection was carried out over two industries, namely, Protective Coatings (Industrial paints) and Luxury bathroom fixtures and fittings in India Subcontinent. Data was gathered using semi-structured interviews with sales professionals who have been selected based on the researchers’ personal contacts. The gathered data were analyzed using qualitative techniques. The study showed that the LCCA plays a significant role in different stages of the Industrial sales process as a sales tool and it has helped the sales personnel to a greater extent during their interaction with various members of the organizational buying unit. Unanimously, it was accepted by the members of the sales department that the other departments are instrumental in the effective use of the LCCA. The LCCA is a tool that can be utilized in the industrial sales process and that other industries can use as well. The idea might be used by sales teams in other companies, such as those that build bridges, railways, and roads, recycle, enforce traffic laws, manufacture building materials, and so forth. The study found that LCCA is used by enterprises as a tool in the industrial sales process. In the Presentation and Demonstration phase of the sales process, the instrument is heavily utilized. The sales team's satisfaction with LCCA has increased due to its proactive role in lowering DMU objections.
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